Help needed!!

stevey77

Hi,

I am after some advice really. I have split from my ex a few months back. Now, the original plan was that she would sign the house over to me ( we have a mortgage in joint names). We owe about 83k and i earn just under 20k so i thought i would be ok. However, the application came back declined because we are in negative equity to the tune of about 4 grand. Add to this the fact they will only lend 80% LTV so i was told - pay £19500 or it is no go. I dont have anywhere near that amount of money so i said no. Anyway i have now decided to buy a smaller, cheaper property but need time to save a deposit of around 8-9 grand so it will take me a while. But my ex is demanding that we sell the house immediately and has told me if i dont agree she will force me through the court to sell it. So my question is, if i refuse, how easy is it for her to do this, will it cost me money and how long is it likely to take? By the way, i am living in the property on my own, but she is still paying half towards the mortgage every month

Thanks for all your help in advance

Thrugelmir

stevey77 wrote: »

Hi,

I am after some advice really. I have split from my ex a few months back. Now, the original plan was that she would sign the house over to me ( we have a mortgage in joint names). We owe about 83k and i earn just under 20k so i thought i would be ok. However, the application came back declined because we are in negative equity to the tune of about 4 grand. Add to this the fact they will only lend 80% LTV so i was told - pay £19500 or it is no go. I dont have anywhere near that amount of money so i said no. Anyway i have now decided to buy a smaller, cheaper property but need time to save a deposit of around 8-9 grand so it will take me a while. But my ex is demanding that we sell the house immediately and has told me if i dont agree she will force me through the court to sell it. So my question is, if i refuse, how easy is it for her to do this, will it cost me money and how long is it likely to take? By the way, i am living in the property on my own, but she is still paying half towards the mortgage every month

Thanks for all your help in advance

Sell the property so you can close the chapter in your life and move on.

Your ex should settle half the negative equity in the property. If you are on speaking terms with her, jointly approach a solicitor to deal with the sale.

Obviously until its sold why not stay in the property. Then rent somewhere small until you've saved the deposit to start afresh.

stevey77

An update: i have been in touch with the bank again and was told i can remortgage with them if i can raise £12,000 to reduce the debt to 72k. However the deal i am on at the moment is BoE + 0.99% which works out at £322 p/month. The deal they are offering is 6.89% SVR which works out at over £500 p/month. Advice please on what to do.

Conrad

No one can advise you as it's in the personal domain. Only you can decide what's best. For example I don't have any idea whether you love the home enough to pay £500 pm. If you do move home it probably wont be any less than £500 pm though.

Also her interests are on an equal par with yours so you can't expect us to naturaly concern ourselves with only your side of things. I can well imagine a post from her on here - 'help, ex refusing to sell, I'm getting nothing for my monthly mortgage contributions'.

Calm yourself and make a decision.

Good luck

Gorgeous_George

The lender is eager to get you off the tracker. You should be eager to stay on it.

It's time to negotiate. I'd make the following offer...

1. Sell now and the ex carries the loss or the majority of the loss.

or

2. You stay in the house and sell when the tracker deal ends (assuming it is not a lifetime tracker). You sell and you carry the loss or the majority of the loss (or profit).

Selling now and splitting the negative equity 50/50 should be your bottom line but she should pay the EA and legal fees as it is her who wants to sell.

GG

stevey77

It is a lifetime tracker. Question is, if i did scrape the 12 grand together, where would i stand regarding paying her off? With the debt down to 72k, and a bank valuation of 80k surely there is a case for her to say there is equity in the house? And she is willing to sign it over as she wants her name off the mortgage, for the right payoff. And i am willing to take it on, and i know i can afford it, its just the bank being difficult about it

Conrad

Gorgeous_George wrote: »

Selling now and splitting the negative equity 50/50 should be your bottom line but she should pay the EA and legal fees as it is her who wants to sell.

GG

Does'nt sound like natural justice to me.

What advice would you give her if she happened to post a thread along the lines 'ex reluctant to sell - help'?

They took on a joint commitment and as such need to jointly discharge thier responsibilities.

I'm sure in her position any of us would want the home sold or transfered to his sole name but of course with 50% of equity returned.

Thrugelmir

As you are in negative equity. As previously said both you and your ex will need to fund this and the costs of selling up, if the property is sold now.

You are lucky enough to have a good rate on your mortgage currently. Though how long this has to run you haven't said.

You are not remortgaging but buying the property again. In effect transferring from joint to your name alone. So your ex will not benefit from the deposit you put down. However the old mortgage will needd to be discharged for you to take possession.

You need to consult your ex obviously as the decision is not yours alone. However a thought I had was this.

You take responsibilty for the payment of the mortgage as it stands. I assume it to be on a repayment basis, so the capital balance is at least reducing slightly every month. (Although the movement in house prices in the future cannot be predicted).

(a) This will give time to save towards the money you require to buy out your ex.
(b) The current loss in selling property will not be crystallised.
(c) Your ex will benefit from a reduction in the capital mortgage debt.
(d) If your property was to rise in value. You would both benefit from the increased value.
(e) You remain on a low interest rate for the time being.
(f) You will buy out her share of negative equity if any remains.

The downside for your ex is that the property falls further in value or if you default on the mortgage repayments. Then she is still jointly and severally liable.

The above is just a suggestion. That requires both parties to be in agreement for it to work.

If she wants "out", then sell the property and share the losses now.